IBM Global Business Services IBM Institute for Business Value 2007 IBM Energy and Utilities Global Residential/Small Business Consumer Survey Selected Results IBM Institute for Business Value © Copyright IBM Corporation 2007 IBM Global Business Services 2007 IBM Energy and Utilities Global Residential/Small Business Consumer Survey 2 Introduction to the Consumer Survey Energy demand demand and spending Reliability and power quality needs Buyer values and influences Competition and consumer choice Prospects for self-generation Survey demographics 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services Introduction to the Consumer Survey The survey’s objective was to get the opinions of households and small businesses in North America, Europe, and Asia-Pac for the 2007 E&U POV Energy demand and spending • Expected changes in consumption • Expected changes in overall energy costs Reliability and power quality needs • Dependency on reliable power • Attitudes toward power quality Buyer values and influences • Buyer values for non-energy purchases • Relative importance of cost, convenience, quality and environmental considerations • Energy usage patterns • Importance of corporate social responsibility and ethics Competition and consumer choice • Knowledge of and availability of alternative providers • Interest in supplier choice and alternative products • Consumer information security Prospects for self-generation 3 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services Introduction to the Consumer Survey The twenty-one question survey was targeted for three geographic regions Sample respondents 1,894 responses from bill-paying households over 18 years of age in six countries – one in North America (United States), three in Europe (Germany, Netherlands, England), and two in AsiaPac (Japan, Australia) Questionnaire structure 21 multi-part questions in four languages covering a wide variety of topics including attitudes towards energy and environment, corporate social responsibility and ethics, interest in renewables and other self-generation, and energy costs The survey was conducted during June-July, 2007. Note: For the purposes of these results, the terms consumer and customer refer to this set of residential and small business energy users. Source: 4 2007 IBM Institute for Business Value Residential/Small Commercial Consumer Survey. 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services 2007 IBM Energy and Utilities Global Residential/Small Business Consumer Survey 5 Introduction to the Consumer Survey Energy demand demand and spending Reliability and power quality needs Buyer values and influences Competition and consumer choice Prospects for self-generation Survey demographics 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services Energy demand and spending Close to one-third of consumers expect their energy use to increase over the next 5 years… How do you expect your energy usage to change over the next five years? 60% 54% 50% 40% 30% 23% 20% 10% 14% 7% 2% 0% Increase a great deal Source: 6 Increase somewhat Remain the same Decrease somewhat Decrease significantly 2007 IBM Institute for Business Value Residential/Small Commercial Consumer Survey; electric customers (n = 1,894). 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services Energy demand and spending … but almost 60% expect their energy bills to increase as a result of changes in their usage of power over the next five years What will be the impact of changes to your electric power and / or natural gas usage on you total energy bill? 45% 39% 40% 35% 31% 30% 25% 20% 18% 15% 11% 10% 5% 2% 0% Increase a Great Deal Source: 7 Increase somewhat Remains the same Decrease somewhat Decrease signficantly 2007 IBM Institute for Business Value Residential/Small Commercial Consumer Survey. 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services 2007 IBM Energy and Utilities Global Residential/Small Business Consumer Survey 8 Introduction to the Consumer Survey Energy demand demand and spending Reliability and power quality needs Buyer values and influences Competition and consumer choice Prospects for self-generation Survey demographics 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services Reliability and power quality needs The growing need for reliable power for health needs in an aging populace will increasingly drive demand for uninterrupted power and quality Do you have health-critical electric-powered devices in your home that are required for regular usage by someone in that home? Percentage of Population Aged 60+ 30 North Am erica Europe Asia 25 Total Utility Consumers with Health-Critical Electric Powered Devices By Age 14% 12% 12% 11% 20 10% 8% 15 8% 7% 7% 6% 10 6% 4% 0 2% 19 50 19 55 19 60 19 65 19 70 19 75 19 80 19 85 19 90 19 95 20 00 20 05 20 10 20 15 20 20 20 25 20 30 5 0% 18-24 25-34 35-44 45-54 55-64 64 and older In mature economies, senior populations will grow by 50-100% over the next 15-20 years, and their reliance on electrically-powered health equipment will expose utilities to unprecedented risks if power outages are not virtually eliminated Source: Source: 2007 IBM Institute for Business Value Residential/Small Commercial Consumer Survey. UN Department of Economic and Social Affairs, World Population Prospects Population Database: The 2006 Revision 9 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services Reliability and power quality needs Long outages and frequent voltage fluctuations are the most disruptive to consumers’ day-to-day activities How seriously would your daily activities be affected by each of the following types of electric power problems? Long Outages (> 2 hrs.) 68% Frequent Voltage Fluctuations 62% Frequent Momentary Outages 10% 15% 45% 20% 30% High to Severe Impact 10 10% 49% 22% 0% 11% 50% 37% Occasional Momentary Outages 5% 43% 40% Occasional Voltage Fluctuations Source: 33% 46% Short Outages (< 2 hrs.) 3% 29% 40% 33% 50% 60% Low to Moderate Impact 70% 80% 90% 100% No Impact 2007 IBM Institute for Business Value Residential/Small Commercial Consumer Survey. 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services Reliability and power quality needs To those who know what power quality means, over 90% believe it is important and 30% would pay a premium for it Do you know what the term power quality means? If you answered yes, is power quality important to you? If power quality is important to you, would you be willing to pay extra for guaranteed power quality? Yes 27% Yes 34% 91% No 58% 73% No Knows What "Power Quality" Means Source: 11 9% 8% Power Quality Is Important Would Pay More for Guaranteed Power Quality 2007 IBM Institute for Business Value Residential/Small Commercial Consumer Survey. 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services 2007 IBM Energy and Utilities Global Residential/Small Business Consumer Survey 12 Introduction to the Consumer Survey Energy demand demand and spending Reliability and power quality needs Buyer values and influences Competition and consumer choice Prospects for self-generation Survey demographics 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services Buyer values and influences While the environment is important, cost and quality are still more important considerations for consumers in their choice of products How important are cost, convenience, quality and environmental considerations in your choice of products? 100% 90% 80% 88% 88% 79% 70% 70% Cost of Product Convenience Quality Environmental Impact 60% 50% 40% 30% 21% 17% 20% 9% 10% 9% 9% 3% 4% 3% 0% Important Source: 13 Neutral Unimportant 2007 IBM Institute for Business Value Residential/Small Commercial Consumer Survey. 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services Buyer values and influences Consumers in the Netherlands put the least emphasis on the environment least in their choice of products and services Q2R: How important are environmental considerations in your choice of products? 90% 80% Important 79% 73% 71% Neutral Unimportant 70% 67% 70% 65% 60% 50% 40% 27% 30% 23% 20% 16% 23% 22% 15% 12% 10% 6% 5% 8% 10% 8% 0% Australia Source: 14 Germany Japan United Kingdom United States Netherlands 2007 IBM Institute for Business Value Residential/Small Commercial Consumer Survey. 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services Buyer values and influences Supplier reputation for cost stability and quality of service are the most important considerations in consumers purchasing decisions How important is a reputation for ethical business behavior, cost stability, good environmental actions, or quality of service in your purchasing decisions? 100% 90% 90% 80% 88% 77% 75% 70% Quality of Service Cost Stability Ethical Behavior Good Environmental Actions 60% 50% 40% 30% 16% 17% 20% 7% 10% 9% 7% 3% 8% 3% 0% Important Source: 15 Neutral Unimportant 2007 IBM Institute for Business Value Residential/Small Commercial Consumer Survey. 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services Buyer values and influences Nearly half of consumers pay more for environmentally friendly non-energy products Do you pay more for environmentally friendly products that are non-energy related? 80% 70% 60% 50% 50% Yes No 50% 40% 30% 20% 10% Source: 16 2007 IBM Institute for Business Value Residential/Small Commercial Consumer Survey. 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services Buyer values and influences Responses were similar across North America and Europe, but Asia-Pacific respondents did exhibit somewhat higher tendency to “buy green” Do you pay more for environmentally friendly products that are non-energy related? Australia 61% Japan 39% 52% U.S. 48% 47% 53% U.K. 45% 55% United Kingdom 45% 55% Netherlands 43% 0% 10% 20% 57% 30% 40% Yes Source: 17 50% 60% 70% 80% 90% 100% No 2007 IBM Institute for Business Value Residential/Small Commercial Consumer Survey. 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services Buyer values and influences While “carbon footprints” and other analyses of personal environmental impact have attracted media attention, almost 80% have not performed one Have you performed any evaluation of the impact of your energy consumption on the environment? 79% 80% 70% 60% 50% 40% 30% 21% 20% 10% Yes Source: 18 No 2007 IBM Institute for Business Value Residential/Small Commercial Consumer Survey. 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services Buyer values and influences One in three Germans reported having evaluated their personal environmental impact, but only one in seven Americans Have you performed any evaluation of the impact of your energy consumption on the environment? Germany 34% Australia 66% 25% United Kingdom 75% 22% 78% Netherlands 19% 81% Japan 18% 82% United States 14% 0% 10% 86% 20% 30% 40% Yes Source: 19 50% 60% 70% 80% 90% 100% No 2007 IBM Institute for Business Value Residential/Small Commercial Consumer Survey. 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services Buyer values and influences Over one-quarter of consumers who have renewable power options available to them purchase them, but most of those who do not have them say they would like the option to do so 100% 100% 80% 24% 46% 80% 11% If you did not answer yes, would you like to be able to choose renewable energy sources? 60% Don't Know No 60% 40% 33% 65% 20% Yes 20% 40% 31% 0% 100% If you answered yes, do you purchase power under renewable energy option? 0% 80% Does your electric power provider offer renewable energy sources (such as solar and wind power) as an option for your household energy use? 60% 73% 40% 20% 27% Source: 20 2007 IBM Institute for Business Value Residential/Small Commercial Consumer Survey. 2007 IBM E&U Consumer Survey | 12/12/2007 0% © Copyright IBM Corporation 2007 IBM Global Business Services Buyer values and influences Over 65% of consumers will pay more for lower greenhouse gas emissions, though most would only accept a very small increase What is the maximum increase in your monthly electric bill you would accept for power that could be definitively shown to have lower emissions of greenhouse gases (and no other unrelated benefits)? 50% 44% 45% 40% 34% 35% 30% 25% 20% 16% 15% 10% 5% 2% 4% 0% 50 percent or more Source: 21 35 percent 20 percent 5 percent Would Not Pay More 2007 IBM Institute for Business Value Residential/Small Commercial Consumer Survey. 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services Buyer values and influences The cost of electricity has a greater impact on when consumers perform their energy-consuming activities than environmental considerations How important would each of the following considerations be in any decision you would make to change the times you do your energy-consuming housework (e.g., clothes washing, dishwashing)? 50% Reduction Off-Peak 84% 10% Reduction Off-Peak 57% Claims of Positive Environmental Impact 30% 61% Demonstrable Positive Enviromental 10% 20% 30% Important 22 14% 23% 40% Neutral 50% 60% 70% 5% 14% 26% 65% 0% Source: 11% 80% 11% 90% 100% Unimportant 2007 IBM Institute for Business Value Residential/Small Commercial Consumer Survey. 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services Buyer values and influences The cost of electricity has a greater impact on when consumers perform their energy-consuming activities than environmental and peer influence If you make decisions to change your energy consumption behaviors at home, how important would each of the following considerations to your decision to make those changes? Lower cost of energy 87% Month cash-back or similar incentive 79% Positive Environmental Impact 40% 0% 10% 20% 19% 38% 30% Important 23 15% 71% Friends and Family Believe It is the Right Thing to Do Source: 10% 40% Neutral 50% 4% 7% 10% 32% 60% 70% 80% 90% 100% Unimportant 2007 IBM Institute for Business Value Residential/Small Commercial Consumer Survey. 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services Buyer values and influences Most customers believe strongly that their utilities should be good corporate citizens, but their geographic location is not critical How important is it to you that your utility companies: 84% Behave Ethically Contribute to Community 12% 76% Corp. HQ near home 32% 18% 28% Corp. HQ in Country 10% 20% 30% Important 15% 40% Neutral 6% 40% 72% 0% 4% 50% 60% 70% 80% 13% 90% 100% Unimportant 83% also said that “excellent customer service” was critical Source: 24 2007 IBM Institute for Business Value Residential/Small Commercial Consumer Survey. 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services Buyer values and influences Respondents in Australia, and the United States felt strongly that corporate leaders should be domestically located How important is it to you that your utility companies have their corporate HQ located in your country? 60% Australia 56% United States 30% 24% Japan 0% 10% Very Important 17% 19% 33% 20% 30% Somewhat Important 40% Neutral 6% 4% 5% 6% 60% 70% Somewhat Unimportant 10% 10% 80% 6% 16% 12% 27% 50% 6% 4% 13% 21% 28% 29% Germany 25 26% 33% Netherlands 9% 20% 42% United Kingdom Source: 21% 90% 7% 100% Not important 2007 IBM Institute for Business Value Residential/Small Commercial Consumer Survey. 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services Buyer values and influences Feelings that utility corporate values matched those of the community varied widely across countries Do your utility companies’ values reflect those of the community? United States 81% Japan 19% 70% United Kingdom 30% 56% 44% Netherlands 51% 49% Germany 50% 50% Australia 3% 0% 97% 10% 20% 30% 40% Yes Source: 26 50% 60% 70% 80% 90% 100% No 2007 IBM Institute for Business Value Residential/Small Commercial Consumer Survey. 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services 2007 IBM Energy and Utilities Global Residential/Small Business Consumer Survey 27 Introduction to the Consumer Survey Energy demand demand and spending Reliability and power quality needs Buyer values and influences Competition and consumer choice Prospects for self-generation Survey demographics 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services Competition and consumer choice Consumers in the United Kingdom have the greatest choice among electric providers while those in US and Japan are the most limited Can you currently choose a different electric power provider than you have now? United Kingdom 83% Australia 63% Germany Japan 10% 13% 68% 12% 0% 21% 31% 16% 16% 56% 20% 30% Yes 40% No 8% 13% 17% 56% United States 28 24% 61% Netherlands Source: 9% 32% 50% 60% 70% 80% 90% 100% Don't Know The United Kingdom appears to have the most competitive industry structure while Japan and the U.S. are the least competitive 2007 IBM Institute for Business Value Residential/Small Commercial Consumer Survey. 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services Competition and consumer choice Consumers in the United Kingdom have the greatest choice among natural gas providers but those in US have the most limited choice of suppliers Can you currently choose a different natural gas provider than you have now? United Kingdom 68% Netherlands 47% Australia Japan 24% Germany 23% 16% 13% 0% 10% 20% 30% Yes 29 29% 15% No 32% 27% 20% 40% Don't Know 50% 7% 22% 22% 40% 3% 23% 47% 24% 13% 11% 27% 40% United States Source: 8% 60% 70% 80% 90% 100% No Natural Gas The United Kingdom appears to have the most competitive and ‘market’ Natural Gas Utility industry and the U.S. is the least competitive 2007 IBM Institute for Business Value Residential/Small Commercial Consumer Survey. 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services Competition and consumer choice Most consumers want the option to choose their electric or gas utility provider, but majority either cannot or do not know they can Can you currently choose a different electric power or natural gas provider than you have now? 42% Electricty 42% 32% Natural Gas 0% 10% 20% Yes Source: 30 16% 30% 30% 40% No 50% If you did not answer yes, would you like to be able to choose your provider? 38% 60% 70% 80% 90% 100% Don't Know Electricty 83% 17% Natural Gas 84% 16% 0% 10% 20% 30% 40% Yes 50% 60% 70% 80% 90% 100% No 2007 IBM Institute for Business Value Residential/Small Commercial Consumer Survey. 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services Competition and consumer choice Utility respondents generally feel uninterested in buying other products/ services from utilities but more than half may be open to the “right offering” Do you use any products or services provided by your electric power or natural gas service provider other than the energy they provide? Are there other products or services that you could imagine could be provided by your electric power or natural gas service provider which you might be interested in purchasing? 90% 84% Yes No Don't Know 80% 70% 60% 46% 50% 46% 40% 30% 20% 10% 6% 9% 8% 0% Currently buy non-energy products from utility Source: 31 Interested in buying non-energy products from utility 2007 IBM Institute for Business Value Residential/Small Commercial Consumer Survey. 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services Competition and consumer choice Except in the Netherlands, a strong majority of consumers want their electricity usage information made available to promote competition Q20. Should your electricity usage information be made available to ALL qualified energy providers to promote greater competition for your business? Japan 96% United States 82% 72% 28% Australia 72% 28% 70% Netherlands 30% 49% 0% 10% 20% 51% 30% 40% Yes 32 18% United Kingdom Germany Source: 4% 50% 60% 70% 80% 90% 100% No 2007 IBM Institute for Business Value Residential/Small Commercial Consumer Survey. 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services 2007 IBM Energy and Utilities Global Residential/Small Business Consumer Survey 33 Introduction to the Consumer Survey Energy demand demand and spending Reliability and power quality needs Buyer values and influences Competition and consumer choice Prospects for self-generation Survey demographics 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services Prospects for self-generation Cost is a potentially big driver to small, off-grid generating systems for consumers How likely would you be to install, maintain, and operate your own electric power generation system … If you could sell power you do not consume Could sell power back to utility back to your utility? 62% If the total cost of electricity were 50% lower Total cost 50% lower than that from your utility? 21% 57% If the total cost of electricity were 10% lower Total cost 10% lower than that from your utility? 22% 32% 0% 10% 20% 31% 30% 18% 40% Likely 50% Neutral 20% 37% 60% 70% 80% 90% 100% Unlikely The slightly better reaction to the ability to sell power back versus getting very low cost power may be part of the indication that consumers want to be on a more equal footing with their providers Source: 34 2007 IBM Institute for Business Value Residential/Small Commercial Consumer Survey. 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services Prospects for self-generation Some consumer interest exists in small generation for environmental reasons – but primarily if there is no cost premium How likely would you be to install, maintain, and operate your own electric power generation system … If the system had zero impact on the Zero Impact/Same Cost environment and the cost for theEnv. electricity from each source was roughly the same? 46% If the system had zero impact on the Zero Env. Impact/50% Higher environment and the cost for the electricity from Cost each source was 50% higher long-term? 31% 27% 0% 10% 25% 20% 30% 40% Likely Source: 35 23% 47% 50% Neutral 60% 70% 80% 90% 100% Unlikely 2007 IBM Institute for Business Value Residential/Small Commercial Consumer Survey. 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services Prospects for self-generation Reliability issues may also be a factor in deployment of small power systems by non-industrial electricity users – but again, at low cost How likely would you be to install, maintain, and operate your own electric power generation system … If the system had 100% reliability and the cost 100% reliability/Same for the electricity from each source was roughlyCost the same? 50% If the system had 100% reliability and the cost 100%source reliability/50% higher cost for the electricity from each was 50% higher long-term? 31% 21% 0% 10% 14% 20% 30% Likely 40% 19% 39% 50% Neutral 60% 70% 80% 90% 100% Unlikely However, there appears to be a solid core of respondents – approximately ¼- for whom 100% reliability is an important factor Source: 36 2007 IBM Institute for Business Value Residential/Small Commercial Consumer Survey. 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services 2007 IBM Energy and Utilities Global Residential/Small Business Consumer Survey 37 Introduction to the Consumer Survey Energy demand demand and spending Reliability and power quality needs Buyer values and influences Competition and consumer choice Prospects for self-generation Survey demographics 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services Survey demographics Six countries were represented in the 2300+ responses drawn from North America, Europe, and the Asia-Pacific region Respondent country of origin Australia 16% Asia-Pac 22% Germany 12% United States & Canada 43% North America 43% Japan 6% Netherlands 6% Europe 35% United Kingdom 17% 38 2007 IBM E&U Consumer Survey | 12/12/2007 © Copyright IBM Corporation 2007 IBM Global Business Services Survey demographics Responses were distributed well across all age groups, and 82% of respondents had responsibility for paying energy bills Responsibility for household energy bills Age distribution 25% 22% 20% 20% 19% 19% 90% 82% 80% 70% 15% 60% 11% 50% 10% 8% 40% 30% 18% 20% 5% 10% 0% Yes 0% 18-24 39 25-34 35-44 45-54 55-65 2007 IBM E&U Consumer Survey | 12/12/2007 No Over 65 © Copyright IBM Corporation 2007 IBM Global Business Services Survey demographics The vast majority of respondents live in 3-4 bedroom dwellings or smaller Size of Dwelling 60% 55% 50% 40% 30% 25% 20% 11% 10% 6% 2% 1% 0% Single Room/ Small Loft 40 One Bedroom Two bedrooms 2007 IBM E&U Consumer Survey | 12/12/2007 Three - Four Bedrooms Five - Six Bedrooms More than Six Bedrooms © Copyright IBM Corporation 2007 IBM Global Business Services Survey demographics 85% of respondents use electric or natural gas heating systems; a majority have air conditioning as well Type of Heating / Cooling System in Use Electric Heat/ AC 26% 11% Electric Heat / No AC Natural Gas Heat/ AC 22% 26% Natural Gas Heat / No AC Oil Heat/ AC 3% 6% Oil Heat / No AC Wood/Coal Heat/ AC 1% Wood/Coal Heat / No AC 1% No Heat/ AC 1% No Heat / No AC 0% 41 2% 5% 10% 2007 IBM E&U Consumer Survey | 12/12/2007 15% 20% 25% 30% © Copyright IBM Corporation 2007 IBM Global Business Services Survey demographics Over 80% incur an average monthly energy bill of no more than US$250, and approx 40% pay less than US$150 per month Monthly Energy Bill 43% Less than $150 41% $150 - $250 13% $250- $350 $350 - $500 $500 or more 0% 42 3% 1% 5% 10% 15% 2007 IBM E&U Consumer Survey | 12/12/2007 20% 25% 30% 35% 40% 45% 50% © Copyright IBM Corporation 2007